CF Industries Defines Tax Character of 2010 Terra Dividends

Tuesday, February 01, 2011

CF Industries Defines Tax Character of 2010 Terra Dividends17:35 EST Tuesday, February 01, 2011
DEERFIELD, Ill. (Business Wire) -- CF Industries Holdings, Inc. (NYSE:CF) today announced that all
dividends paid by Terra Industries Inc. (Terra) in 2010 will, for U.S.
federal income tax purposes, be classified as non-dividend
distributions. The income tax character of the non-dividend
distributions is based on Terra's current and accumulated earnings and
profits for the period ended April 5, 2010, the date on which CF
Industries acquired a controlling stake in Terra.
Terra issued two dividends in calendar year 2010:
$0.10 per common share payable April 7, 2010, to holders of record on
March 17, 2010 and
$0.10 per common share payable April 22, 2010, to holders of record on
April 1, 2010.
Former Terra stockholders should contact their tax advisors to determine
their individual tax treatments.
About CF Industries Holdings, Inc.
CF Industries Holdings, Inc., headquartered in Deerfield, Illinois, is
the holding company for the operations of CF Industries, Inc. CF
Industries is a global leader in nitrogen and phosphate fertilizer
manufacturing and distribution, serving both agricultural and industrial
customers. CF Industries operates world-class nitrogen fertilizer
manufacturing complexes in the central United States and Canada;
conducts phosphate mining and manufacturing operations in Central
Florida; and distributes fertilizer products through a system of
terminals, warehouses, and associated transportation equipment located
primarily in the Midwestern United States. The company also owns 50
percent interests in GrowHow UK Limited, a fertilizer manufacturer in
the United Kingdom; an ammonia facility in The Republic of Trinidad and
Tobago; and KEYTRADE AG, a global fertilizer trading organization
headquartered near Zurich, Switzerland. CF Industries routinely posts
investor announcements and additional information on the company's
website at www.cfindustries.com
and encourages those interested in the company to check there frequently.
Safe Harbor Statement
Certain statements contained in this communication may constitute
"forward-looking statements." All statements in this communication,
other than those relating to historical information or current
condition, are forward-looking statements. These forward-looking
statements are subject to a number of risks and uncertainties, many of
which are beyond our control, which could cause actual results to differ
materially from such statements. Important factors that could cause
actual results to differ materially from our expectations include, among
others: our ability to integrate the businesses of CF Industries and
Terra promptly and effectively and to achieve the cost savings and
synergies we anticipate from the Terra acquisition within the expected
time frame or at all; the potential for disruption from the Terra
acquisition to make it more difficult for us to maintain relationships
with customers, employees or suppliers; the volatile cost of natural gas
in the areas where our production facilities are principally located;
the cyclical nature of our business and the agricultural sector; the
global commodity nature of our fertilizer products, the impact of global
supply and demand on our selling prices, and the intense global
competition in the consolidating markets in which we operate; conditions
in the U.S. agricultural industry; weather conditions; our inability to
accurately predict seasonal demand for our products; the concentration
of our sales with certain large customers; the impact of changing market
conditions on our FPP; risks involving derivatives and the effectiveness
of our risk measurement and hedging activities; the reliance of our
operations on a limited number of key facilities and the significant
risks and hazards against which we may not be fully insured; reliance on
third party transportation providers; risks associated with joint
ventures; risks associated with expansion of our business, including
unanticipated adverse consequences and the significant resources that
could be required; potential liabilities and expenditures related to
environmental and health and safety laws and regulations; our potential
inability to obtain or maintain required permits and governmental
approvals or to meet financial assurance requirements; future regulatory
restrictions and requirements related to GHG emissions, climate change
or other environmental requirements; acts of terrorism and regulations
to combat terrorism; difficulties in securing the supply and delivery of
raw materials we use and increases in their costs; risks associated with
international operations; losses on our investments in securities;
deterioration of global market and economic conditions; our substantial
indebtedness and the limitations on our operations imposed by the terms
of our indebtedness; our ability to comply with the covenants under our
indebtedness and to make payments under such indebtedness when due;
potential inability to refinance our indebtedness in connection with any
change of control affecting us; and loss of key members of management
and professional staff. Forward-looking statements are given only as of
the date of this release and we disclaim any obligation to update or
revise the forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.
CF Industries Holdings, Inc.Terry HuchSenior Director,
Investor Relations & Corporate Communications847-405-2515 ? thuch@cfindustries.com

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